£1800 OFFERED

Hawke's Bay Herald-Tribune, Issue 211, 22 September 1937, Page 8

£1800 OFFERED

Pres» Association.)

Goods Services That Earn £36,000 a Year PURCHASE BY THE STATE

fBs Selesraph—

AUCKLAND, Last Night. The estimate that for the expenditure of £1800 the Kailway Department and the publie of New Zealand will make an annual 'profit of £24,000 through 1 the purchase of road goods-transport serviees was made to-day by Mr. L. P. Leary before the Transport Tribunal in suggesting that the compensation offered for goods-transport services that were being taken over by the Government xepresented much less than justico to the operators. The case of Felton's "Waikato Transport, Ltd., occupied the attention of the tribunal to-day. Mr Leary represented tho company and Mr V. B. Meredith the Crown. Sir Francis Prazer presided. In opening the case for the Crown, Mr. Meredith referred to the chaotie competition of road transport which had engaged official attention in every part of the world. It was obvious, he said, that their operations inust ultixnately come under control and inevitably cease. He spoke of the ili-effects brought about by road transportt, and said that the eompanies were asking for compensation on something that they had never had — namely, the right to run in perpetuity. During evidence before the tribunal it had been pointed out that the gross earnings of Felton's and McClymont's services in the Waikato were £36,000 annually. As an allowance in compensation for the loss of their businesses, the two firms were offered a total of £1800 by the Government, in addition to the valuation of the plant, equipr ment, etc. It was admitted by Mr_ Henry Yalentine, second assistant-General Manager of Kailway s, this morning, that he would estimate the additional costs to the railways in running these services at one-third of their earnings. This, Mr. Leary submitted, woujjd give the department a profit of £24,000 annually in perpetuity. Even if the Government took them over as road serviees rather than including the traffic in the railways' earnings, an annual profit of £12,000 would result. '